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Its their choice to do what they want and that is not affecting you at all.

Both the people are adults so they know what they are doing.

Though genetically the kid might get messed up. The grandmother is quite old and it might be problem for the partner in case you see for long term prospects. I do think its a selfish move from the grandmother to take benefit of the grandson.

All i have to say is WTF lol
That has got to be one of the weirdest things i have ever heard... Incest, grannies and a baby on the way, do people have no morals anymore?
Really disturbing to read hey, I feel so sorry for the child to be honest, there will definitely be something wrong with is genetically.